Des Moines is experiencing a significant decrease in affordable housing, a trend that poses a serious risk to many residents. As the city grows, the availability of homes and apartments that are affordable without government help is rapidly diminishing. This situation leaves a growing number of low-income households vulnerable to unexpected financial challenges and potential homelessness.
Key Takeaways
- Des Moines has only 23 affordable housing units for every 100 extremely low-income households.
- Naturally occurring affordable housing is disappearing due to investor renovations.
- A family of four earning less than $34,350 is considered extremely low-income.
- Polk County has allocated $10 million for new affordable housing projects.
- New income-restricted apartments for veterans are opening at Alley Landing.
Affordable Housing Gap Widens in Des Moines
The Des Moines metro area is struggling to keep pace with the housing needs of its expanding population. Data from 2022 shows a stark reality: for every 100 extremely low-income households, there are only 23 housing units that are both affordable and available. This figure falls well below the Iowa statewide average of 42 units and the national average of 34 units.
Matt Hauge, from the Polk County Housing Trust Fund, highlights the severity of the issue. He states that many renters are just one unforeseen expense away from losing their homes. This precarious situation affects a significant portion of the city's residents who depend on lower-cost housing.
Income Thresholds
The U.S. Department of Housing and Urban Development (HUD) defines an extremely low-income family of four in the Des Moines metro as one earning less than $34,350 annually for fiscal year 2025.
The Disappearance of Naturally Occurring Affordable Housing
A major factor contributing to the housing crisis is the steady loss of what is known as "naturally occurring affordable housing." These are properties that remain affordable without government subsidies or rent restrictions. Their affordability often stems from their age or condition.
According to Hauge, these properties are disappearing as investors increasingly target multifamily real estate in Des Moines. The city's historically lower rents make it an attractive market for developers looking to renovate older buildings. Once updated, these properties command higher rents, effectively removing them from the affordable housing pool.
"Because Des Moines has historically had lower rents than many other parts of the country, we're looked at as a community with quite a bit of upside," Hauge explained.
Impact on Vulnerable Populations
The National Low-Income Housing Coalition reported that in 2023, 34% of Iowa's extremely low-income households included working individuals. However, the majority relied on fixed incomes, with 31% being seniors and 24% being people with disabilities. These groups are particularly susceptible to rising housing costs and the shrinking supply of affordable units.
The trend of renovating older buildings and raising rents directly impacts these vulnerable groups, forcing them to search for increasingly scarce options or face displacement.
Historical Losses
Examples of lost naturally occurring affordable housing include the Jefferson Apartments, which closed in 2021. Another case is the Hotel Randolph, which provided transitional living space for low-income residents until 2013. It has since been converted into market-rate apartments now called The Randolph.
Why Des Moines is a Target for Developers
Des Moines has a higher concentration of low-income residents compared to many other parts of Iowa. This, combined with its rapid growth, makes it a unique market. The city's older housing stock is appealing to two distinct groups: families seeking lower rents and developers eager to renovate and increase property value.
In contrast, the suburbs surrounding Des Moines typically feature newer, higher-priced homes. This creates a clear divide in housing availability and cost.
"In a place like outer Urbandale, it was a cornfield 10 years ago, so there weren't any apartments at all at that lower end of the market," Hauge noted, highlighting the lack of entry-level housing in newer developments.
Polk County Responds with New Initiatives
In response to the growing crisis, Polk County is actively working to increase housing options. A new five-year blueprint aims to address homelessness and expand the supply of affordable homes. In August, county supervisors approved the allocation of $10 million in federal funding specifically for affordable housing projects.
One notable development is the opening of Alley Landing at the former Plaza Lanes site. This project offers income-restricted apartments and prioritizes housing for veterans, providing a much-needed resource for a critical population.
These efforts represent a concerted push to reverse the trend of shrinking affordable housing and ensure that Des Moines can accommodate its growing population without leaving its most vulnerable residents behind.
